MEFD October 2017

Published: Tuesday December 5th, 2017

Overview

Indications are that domestic economic activity stayed mildly positive over the review month, with the tourism sector showing signs of improvement, while construction sector output continued to be supported by foreign direct investment-related projects and to a lesser extent, ongoing post hurricane re-construction work. Foreign exchange flows through the banking sector, meanwhile, underscored further strengthening in domestic demand and hence spending on imports of goods and services. In the fiscal sector, a sharp increase in expenditures during June led to a sizeable increase in the deficit over FY2016/17; however, timing-related factors contributed to a narrowing in the budgetary gap during the first quarter of FY2017/18. Monetary sector developments in October were dominated by the Government’s foreign currency borrowing activities, which led to expansions in both liquidity and external reserves.

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